Stable value in a period struggling with value crisis

–MagNet Bank is the only bank in the region that operates based on values. What differentiates a community bank from traditional commercial banks? How does the community approach manifest in MagNet Bank’s business philosophy and strategy?

Richárd Posch
banking director
MagNet Bank

– We are Hungary’s only privately-owned independent financial institution. In 2016 we became a member of the Global Alliance for Banking on Values. Our business philosophy is based on the community banking model, which always gives priority to the individual and its environment – even over profit goals.

– Does it pay off to do business like this?

– It absolutely does! We have been making profit for more than 26 years, but value-based banking isn’t only good business, it is great responsibility too. Profit expectations are more moderate, but we provide customers with affordable services, and spend a part of the bank’s profit on supporting the society.

– One of the biggest events last year and this year was the acquisition of Sopron Bank. In addition to expansion, what new opportunities has this step created for MagNet Bank?

– First and foremost let me stress that with this move we acquired a quality customer portfolio, new corporate and private customers, and colleagues with valuable knowledge. Secondly, our operating size grew to be more economical: our corporate loan portfolio got almost 40% bigger, and our consumer loan stock grew by 100%. At the moment 10,000 companies and 52,000 consumers have an account at MagNet Bank. This puts us in an exciting position, where we can develop and introduce new products and services in 2023.

Satisfying complex and unique needs

– We can all feel the impact of what is happening in the world right now. What kind of challenges are Hungarian enterprises forced to face?

– Energy crisis, a very high inflation rate, wage pressure, sharply rising interest rates – these are the challenges that businesses have to cope with. There is no safety and stability anymore, which is really bad news, considering the fact that these are essential things for running a business.

– What solutions does MagNet Bank offer to existing and prospective partners in these difficult times?

– MagNet Bank focuses on Hungarian-owned, stable and profitable micro-, small and medium-sized businesses. Practically we have every type of loan they might need, from current account and current asset loans for preserving their liquidity, through medium-term loans to long-term loans for infrastructural development. Thanks to our size, our strength is granting project loans for more complex and unique undertakings.

Hand in hand with KAVOSZ

– You also have more state-subsidised loan products. Why did MagNet Bank start working with KAVOSZ?

– Being a Hungarian-owned commercial bank, it is kind of obvious that MagNet Bank reaches out to Hungarian micro-businesses and SMEs. Széchenyi Card products are perfectly suited to the needs of these customers. In spring 2022, MagNet Bank signed a cooperation agreement with KAVOSZ and joined the Széchenyi Card Programme. Within the framework of this, we keep launching relevant new products, such as the SZK MAX investment loan and the SZK MAX liquidity loan, which became available on 1 September 2022.

– What were the results of your cooperation and what are your future goals?

– Right now the colleagues who work in corporate financing are processing SZK MAX investment and liquidity loans that constitute 10% of our total loan stock. Our goal is to cooperate closely with KAVOSZ in the future, so that we can serve our present and future customers with the most competitive products.

More information: magnetbank.hu (x)